Archive for the 'Markets' Category

The Vulgar Fed

Monday, February 24th, 2014

I grew up with a lot of rich people.  You could tell what the mothers of these peopple thought by watching how they reacted to different people or actions.  One would never do such things as picking your nose or farting or spitting or swearing.  These were the types of things that coarse and vulgar […]

Party Like It’s 1995 – or The 35% Year

Thursday, January 31st, 2013

UPDATE 2014.02.24 – Almost, almost. Fine work Laszlo. 459.27 12/30/1994 615.93 12/29/1995 34.11% I chuckled the other day watching business news with Laszlo Birinyi talking S&P500 at 2500 and others talking about how we could have a 35% up year like 1995. Consider what was happening in 1995.  The end of 1994, beginning of 1995 […]

The Japanese Gamble

Tuesday, January 15th, 2013

The chart below of the Japanese Yen has finally started looking like the sleeping trade of the century, the widow-maker, the great unwinding of the Japanese economic system may be starting to occur.  Japan is a wealthy country despite the crash in 1990 and resulting chronic deflation.  GDP per capita is multiples of that in […]

Lord of the Blings … or How Bernanke Became Maobama’s B**ch

Saturday, September 15th, 2012

Man do I want some of what those guys at the Marriner Eccles building are smoking!  Against the power of Mordor there can be no victory.  Lord Saruman, what does the Great Eye command?  Saruman here is Ben Bernanke, the great monetary Wizard.  Able to marshall forces as great as the winds and tides to […]

Dead Corn 2012

Tuesday, August 7th, 2012

I recently drove through Minnesota, Iowa, Missouri, Kansas, a tiny part of Oklahoma, and Arkansas.  While driving on US 69 South from Kansas City just across the border from Missouri (so extreme eastern Kansas) I took some pictures of the corn and bean crops.  Corn was just dead as far as the eye can see.  […]

What a Sad and Pathetic Country We Have Become

Sunday, March 11th, 2012

Never mind that the immigration authorities detained and deported a British couple on holiday because prior to their travel to the US the man had Tweeted to his followers “Can you meet us before we go destroy America?”.  Any person with the least bit of brain matter would understand that this meant they were coming […]

Cramer and Island Reversals

Thursday, February 16th, 2012

For some reason I had CNBC on this morning by mistake.  I no longer wtach CNBC as I cannot stand listening to Cramer in the morning, or anytime really.  I laughed out loud when I heard him say “Yeah, huge island reversal in Apple yesterday, not to get too technical…” or somehting like that.  Hmm.  […]

Where Is Jon Corzine? Why Is He Not In Jail?

Tuesday, November 15th, 2011

The saga of MF Global has faded from the headlines a bit, what with the end of the world approaching in 13 months or so, and societal and economic collapse prior to that.  But one big question I have is why have I not heard any talk about either the US DOJ or some States […]

2008 Replay? Look at the Brazilian Real

Saturday, October 1st, 2011

Lots of talk lately about whether we are replaying 2008 in the real economy and in a host of markets.  The unfolding chart of the Real is starting to look very similar to 2008.  Will commodities collapse again and the dollar rally hard?  Hard to believe that things will replay but we are staring at […]

Have The Commodity Markets Just Felt The Lead Fist Of Government?

Wednesday, May 11th, 2011

It is passing strange that a week or so after the Obama administration declared it would be taking a tough line on speculation and shortly after the Fed was roundly abused for a lackluster performance in its 1st press conference and for not taking any responsibility for the run-up in commodities due to its outrageously […]

Cramer is an Idiot

Thursday, May 5th, 2011

Cramer was just on CNBC ranting about how the markets had failed. Erin Burnett the idiot was just lapping it all up. The massive unwind in energy has him all excited. $10 down in a day in crude is a very very big move. His takeaway? The Government should control it. Uh-huh. As if the […]

Short Comment On Bernanke Presser

Wednesday, April 27th, 2011

What I missed in watching this farce was any sense that the Fed is going to fail in achieving the fulfillment of its mandate by virtue of the very policies it is pursuing. It reminds me of the oft-heard proverb that one often meets ones destiny on the road one takes to avoid it, something […]

Something Wicked This Way Comes

Wednesday, April 6th, 2011

Today I paid $4.15 to put some gas in the tank of my car. Ben Bernanke refuses to accept that the Fed has anything to do with commodity inflation and refuses to view it as anything other than “transitory” according to remarks on April 5th.  Before putting the lie to such nonsense, it will be […]

What the Hell is Wrong With Princeton? Why New Keynesianism is BS

Tuesday, November 9th, 2010

What do Ben Bernanke and Paul Krugman have in common, aside from the fact that they are both madmen?  They are both professors of economics at Princeton University.  Now I have a cousin who got his PhD in Physics from Princeton.  I hit Princeton on my college tour years ago.  It is a lovely place […]

Who Will Stop The Outrageous Zimbabwe Ben Bernanke?

Saturday, November 6th, 2010

While our Dear Leader, our erstwhile American Nero, left for India and Asia spending $200 Million per day on entertaining his Media Mogul friend and mouthpiece, CNBC owner and GE Chairman Jeff Immelt, in order to escape the unpleasantly painful aftermath of his face slapping in the mid-term elections, his putatively independent economic minion, Zimbabwe […]

Real Men Don’t Do QE

Thursday, September 30th, 2010

Unless you live under a rock, you must be aware that the Federal Reserve is now widely expected to engage in a strategy of expanded Quantitative Easing to fend off incipient deflation, or if you believe the Fed’s latest statement, even to get low inflation to be more in line with what the Monetary Policy […]

Watch Out Below

Sunday, June 6th, 2010

When the US Employment Situation Report came out Friday, the 41k private payroll print shocked the bulls. An interesting divergence appeared. Normally a weak payroll print in relation to expectations would cause the currency in question, the US Dollar in this case, to weaken substantially. But in fact the opposite took place. The Dollar rallied […]

Soybeans Wound Up

Monday, March 29th, 2010

From the pre-harvest low near $5.25 in September 2006 to the monster blow-off high of $16.63 in July 2008, Beans more than tripled in price.   Then in a mere 5 months as the world was crashing in 2008, they lost more than half their value to a low of about $7.75, a drop of nearly […]

Anecdotal Evidence of Economic Weakness

Thursday, February 25th, 2010

There is no number to convey what I have perceived in the last couple of months but the signal nevertheless seems too strong to ignore.  I take my daughter to Tae Kwon Do near downtown Chicago two or three days a week from further north on the Interstate.  I do this after school so it […]

Here We Go Again – Dollar Devaluation

Wednesday, June 10th, 2009

In December the Fed announced that it would target Fed Funds at 0 to 1/4% and it also announced that it would be in the market for agency debt and treasuries, effectively monetizing the debt of the United States.  The dollar, which had been strengthening in the flight to quality as risk positions were eliminated […]